Despite recent market volatility triggered by geopolitical tensions and concerns over higher oil prices, Vikas Khemani, Founder of Carnelian Asset Management and Advisors, remains fully invested in Indian equities. According to reports from CNBC TV18, Khemani believes the current disruptions are temporary and expects India's growth story to regain momentum as energy-related uncertainties ease. The fund manager, whose firm managed assets worth $1.07 billion as of April 30, 2026, said periods of market uncertainty should be viewed as opportunities for long-term investors rather than reasons to exit the market.
Among all sectors, Khemani identified manufacturing as the strongest long-term opportunity, stating that India's manufacturing sector remains at an early stage of development and stands to benefit from import substitution, export growth and continued government support. As reported by CNBC TV18, he said the whole manufacturing space will continue over time, one decade, with opportunities existing across auto components, specialty chemicals, contract development and manufacturing organisations (CDMOs) and capital goods. The fund manager emphasized that several companies capable of delivering significant growth over the long term exist within this sector.
Carnelian has generally avoided the IT sector over the past three years, holding no single large-cap IT stocks and only a few mid-cap IT companies. According to recent market analysis, Khemani noted that the IT sector has experienced single-digit volume growth and faces significant headwinds from competitive pressures in AI and other emerging technologies. He questioned whether the current 15-16-18-20 valuation levels can be sustained without a return to strong growth, stating that investors seeking FD-type returns might find better alternatives in the current market environment. This cautious approach is gaining momentum among fund managers, with Devang Mehta, Deputy MD & CIO-Equity at Spark Private Wealth Management, also remaining cautious on large-cap IT stocks due to weak growth visibility. Market expert Neeraj Dewan from The Economic Times echoes this sentiment, noting that the guidance given by most IT companies was not that great and advising caution on the sector over the next two to three quarters as earnings visibility remains limited.
Mehta from Spark Private Wealth Management prefers capital market-linked businesses, power automation, engineering, manufacturing and discretionary consumption sectors, citing their potential to benefit from structural trends over the next three to five years. According to CNBC TV18, India's ongoing shift toward investing through mutual funds, PMS, wealth managers and capital market platforms offers a long-term growth opportunity. The fund manager emphasized that domestic-facing plays, including capex, consumption and financial market-related investments, offer better alternatives than chasing undervalued IT stocks. Dewan from The Economic Times maintains a similar approach, favouring infrastructure, energy, FMCG, and selective pharmaceutical companies, noting that recent weakness has created opportunities to gradually build positions in quality businesses. Carnelian continues to favour pharmaceuticals, healthcare, contract development and manufacturing organisations (CDMOs), financial services and manufacturing businesses in terms of portfolio positioning, focusing on cash-flow generation, earnings growth and risk-reward assessments.
Dewan from The Economic Times sees significant opportunities across multiple sectors despite IT caution. In the power and energy space, he maintains a positive outlook on renewable energy, battery storage, and energy infrastructure companies, while advising caution on BHEL after its recent run-up. The steel sector remains another area of optimism with domestic steel prices remaining supportive and healthy production trends, with strong pricing and volume growth translating into robust profitability for major producers. Among auto ancillaries, he is particularly positive on tyre manufacturers that delivered strong quarterly results with reasonable valuations despite crude oil price concerns. In the commercial vehicle segment, Dewan prefers CV manufacturers over oil marketing companies, expecting commercial vehicles to outperform passenger vehicles in the near-to-medium term due to strong order books and infrastructure spending. He also remains constructive on aviation stocks, believing the worst of oil price spikes may be behind the market and that stabilization could support airline profitability going forward.
